U.S. and Japan consider new display factory as part of $550 billion investment plan

TOKYO, March 9 (GeokHub) — The United States and Japan are exploring plans to build a display manufacturing plant in the U.S. in partnership with Japan Display, according to people familiar with the discussions.

The project is being considered as part of Japan’s broader $550 billion investment package aimed at strengthening economic cooperation with the United States and boosting strategic technology industries.

The potential factory would focus on producing display technologies used in a range of devices, including systems that support military and advanced technology applications.

Reducing reliance on China

Officials from both countries are looking to strengthen supply chains and reduce dependence on China, which currently dominates global display manufacturing.

Washington has been increasingly concerned about the reliance on foreign suppliers for key components used in defense and advanced electronics.

The proposed plant would help expand domestic display production in the United States while reinforcing technology partnerships between the two allies.

Multi-billion dollar project under discussion

Industry sources say the display factory could involve investment of around $13 billion, though discussions remain ongoing.

The project is one of several initiatives being considered as part of a broader set of economic agreements between Tokyo and Washington.

Other proposals reportedly include potential cooperation on nuclear energy projects linked to Japanese investment commitments in the United States.

Japan Display shares surge

Shares of Japan Display surged sharply following reports of the possible partnership, climbing about 80% during Monday trading.

The jump pushed the company’s market value to roughly 190 billion yen, or about $1.2 billion.

Japan Display declined to comment on the reported discussions.

Company seeking turnaround

Japan Display was formed in 2012 through a government-backed merger of the display businesses of several major Japanese electronics companies.

Once a leading supplier of liquid crystal display panels and a major screen provider for early iPhones, the company has struggled for years after smartphone manufacturers shifted toward newer display technologies.

Competition from Chinese manufacturers has also pressured prices and reduced Japan’s presence in the global display market.

In response, the company has been restructuring its operations, focusing more heavily on automotive display technologies while scaling back some other production lines.

Analysts expect China to continue dominating global display capacity in the coming years, potentially increasing its share of the market significantly by the end of the decade.